Paper 1 October/November 2006 Economics (9708/01) A Level
Country X trades with only two countries, USA and Japan.
90 % of the country’s trade in goods and services is with the USA and 10 % is with Japan.
The original value of the trade-weighted exchange rate index is 100.
The change in the value of country X’s currency against the US$ is +10 %. The change in the value of country X’s currency against the Japanese yen is +50 %.
What will be the value of country X’s new trade-weighted exchange rate index?